Procedures for franchising from abroad to Vietnam

by BichNgoc

Many foreigners want to learn about franchising in Vietnam. LSX Lawfirm will give you an article about: “Procedures for franchising from abroad to Vietnam”, as follows:

Law on commercial 2005

What means of franchising from abroad to Vietnam

Commercial franchise means a commercial activity whereby franchisors permit; and require franchisees to undertake by themselves to purchase or sell goods or provide services on the following conditions:

Firstly, the purchase or sale of goods or provision of services shall be conducted in accordance with methods of business organization prescribed by franchisors and associated with the franchisors’ trademarks; trade names; business knows-how, business slogans, business logos and advertisements.

Secondly, franchisors shall be entitled to supervise and assist franchisees in conducting their business activities.

Procedures for franchising from abroad to Vietnam.

Place of settlement

Department of Planning – Ministry of Industry and Trade

Related article: Commercial franchise that foreigners should know in Vietnam

Franchise conditions

  • The business system intended to be used for franchising has been in operation for at least 1 year;
  • Registered commercial franchising activities;
  • Then, franchised business goods and services are not on the list of goods and services banned from business;
  • If the goods or services are on the List of goods and services restricted from business; or the List of goods and services subject to conditional business, then the enterprise may only do business after the sector management agency issues a business license; papers of equivalent value or meeting business conditions.

Prepare documents

  • Firstly, Application form for approval to register franchising activities in Vietnam
  • Then, Franchise Introduction
  • A copy of the business registration certificate or equivalent document of the foreign trader; the competent authority certified where the foreign trader established
  • A copy from the original book or a certified copy or a copy presented with the original for comparison of the protection document of industrial property rights in Vietnam; or abroad in the case of licensing of the objects. protected industrial property object
  • Documents evidencing the approval of the original franchisor’s permission to re-franchise in case the trader registering for franchising is a secondary franchisor.

Processing dossiers


• Firstly, the intended franchisor sends the application for registration of commercial franchising to the Ministry of Industry and Trade
• Then, within 05 working days after receiving complete and valid dossiers; the Ministry of Industry and Trade shall register commercial franchising activities in the Franchise Register and issue a Notice of approval for registration; franchising activities send traders about such registration. In case of refusal of registration, a written notice that they gave to the intended franchisor, clearly stating the reason
• In case the dossier is incomplete or invalid, within 02 working days from the date of receipt of the dossier; the Ministry of Industry and Trade shall issue a written notice to the intended franchisor to supplement and complete the dossier.

Related questions about Procedures for franchising from abroad to Vietnam

Sub-franchise to a third party is how?

So, a franchisee entitled to sub-franchise to a third party (referred to as sub-franchisee) if franchisor consented it.
Sub-franchisees shall have the rights and obligations of franchisees provided for in Articles 288 and 289 of Vietnam Commercial Law 2005.

Registration of commercial franchises

Before granting commercial franchises, intended franchisors must register them with the Trade Ministry.The Government shall specify the conditions for conducting business under commercial franchise and the order and procedures for registering commercial franchises.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Procedures for franchising from abroad to Vietnam”, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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